Artificial intelligence is a foundational technology driving innovation in every corner of the economy.
Lawmakers are advancing proposals that would require startups to disclose detailed information about their AI training data, specifically the sources and copyright status of the content used.
AI innovators need clarity, not uncertainty and legal threats
Charlotte Ketelaar is passionate about using her background in investment to help startups raise capital. While mentoring a variety of startups, she found a wide gap between the founders and investors, which led her to co-found Capwave AI. Recently, we had the opportunity to sit down and discuss her product, the role of open source, and more.
When his original grading and evaluation platform wasn’t getting any bites in the world of higher education, Ali Aldubaisi and his co-founder, Ali "AJ" Aldjaei, ended up pivoting to the training of law enforcement. Today, Kaiden AI is used in police academies across the country to train recruits on how to de-escalate high-pressure scenarios. We sat down with Ali to discuss his software, selling to government organizations, and founding a startup in northern Virginia.
TLDR: The Trump administration and policymakers are putting growing pressure on a bedrock Internet law that allows companies of all sizes to host and moderate user-generated content. Startups depend on this framework—known as Section 230 of the Communications Decency Act—to grow without the fear of being sued into bankruptcy over the user-generated content they host and moderate. Weakening this law would have a disastrous effect on the Internet ecosystem.
In recent comments filed with the Senate Judiciary Subcommittee on Intellectual Property, Engine emphasized the importance of copyright fair use and urged that it continue to be protected and permitted online. Fair use is an essential component of copyright law that allows creators and users to engage in certain authorized uses of copyright content, which is important because overly-rigid application of copyright law could otherwise stifle innovation and creativity. And as we explain in the letter, startup platforms in particular benefit from balanced copyright law because they are able to serve users and creators who rely on fair use without having to worry about potentially ruinous copyright infringement litigation.
The Big Story: In order to promote tech competition, Congress needs to hear from startups. While a planned House antitrust panel next week featuring the CEOs of Amazon, Apple, Google, and Facebook has reportedly been postponed, the startup community is still paying close attention to ongoing congressional discussions about allegations of anti-competitive practices by the country’s largest tech firms. Recent history has shown that efforts to combat the perceived dominance of a few tech firms often have counterproductive outcomes, and policymakers need to factor the U.S. startup community into their work moving forward.
PAIRIN, a startup based in the Mile-High City, is using the power of entrepreneurship to help people across the U.S. who have been displaced by the economic uncertainty caused by the COVID-19 outbreak. We recently spoke with Michael Simpson, Founder and CEO of PAIRIN, to find out how he is leveraging his background in technology and coaching to harness the power of workforce development, government, and education to maximize every person’s potential.
TLDR: Europe’s top court last week struck down Privacy Shield, a data transfer pact between the European Union and the United States that allowed U.S. companies to process and store European users’ data in America. The decision, which could have an outsized impact on U.S. startups, stems from U.S. government surveillance programs that European courts have repeatedly found issues with—especially in the wake of the disclosures from former National Security Agency contractor Edward Snowden in 2013. Without the U.S. scaling back its sweeping surveillance programs, however, it’s unlikely that the EU and U.S. will be able to agree on a new framework to replace Privacy Shield—something that growing startups need to reach potential users across Europe.
The Big Story: EU court strikes down transatlantic data transfer pact. The Court of Justice of the European Union this week struck down Privacy Shield, a transatlantic agreement that lets U.S. companies process and store European users’ data in the U.S. The ruling creates uncertainty for many U.S. and EU companies by jeopardizing the flow of data between Europe and the United States. The case, known as “Schrems II,” evolved out of Austrian privacy activist Max Schrems’ 2013 lawsuit following the revelations about the U.S. government’s surveillance programs by NSA whistleblower Edward Snowden.
The Inclusive Innovation Incubator (In3) is the first ecosystem builder focused on cultivating and supporting underrepresented entrepreneurs in the nation’s capital. Launched three years ago to improve diversity and inclusion in D.C.’s emerging tech space, In3 has held hundreds of events and supported more than 1,500 entrepreneurs looking to launch new businesses.
TLDR: We’re now a month out from Congressional Startup Day, an event highlighting the importance of startup activity across the country. This annual event connects members of Congress with startups in their states and districts to learn more about the successes and challenges of being an entrepreneur. With the coronavirus pandemic having an outsized impact on U.S. startups, Congressional Startup Day serves as a timely opportunity for members to learn more about how they can support and highlight the work of their local entrepreneurs.
The Big Story: Startup community voices concerns about suspension of H-1B visas. U.S. startups are asking the Trump administration to reconsider a recent decision that will limit access to high-skilled talent amid the coronavirus pandemic. In a new letter, Engine and 118 startups, entrepreneurial organizations, and other companies—including Pinterest, Postmates, Reddit, and Twitter—are asking President Donald Trump to reconsider his suspension of work visas to high-skilled foreign workers, including those issued under the H-1B visa program. The letter comes after the president signed an executive order last week temporarily halting the issuance of work visas for foreign workers through the end of the year.
This afternoon, Engine released a letter signed by 118 startups, entrepreneurial organizations, and other companies—including GitHub, Postmates, Reddit, and Twitter—asking the Trump administration to reconsider its recent suspension of work visas for high-skilled foreign workers, including those issued under the H-1B visa program.
St. Louis is developing a reputation as a hub for entrepreneurs, ranking as one of the top U.S. cities for startups. One of the startups that calls St. Louis home is Venku, an online platform that connects outdoor enthusiasts with exciting on-the-ground experiences. Whether it’s fishing, hiking, hunting or exploring, Venku improves access to outdoor experiences by allowing people across the country to connect with expert hosts eager to take them on their next adventure.
TLDR: When Congress returns from recess later this month, policymakers must ensure that they are effectively supporting startups in their fourth coronavirus relief package. In order to protect our nation’s startup ecosystem, however, Congress needs to look beyond currently available small business loan programs and examine other policy proposals that will enable startups and entrepreneurs to survive the pandemic’s economic fallout.
The Big Story: Congress extends small business loan program, but startups still need relief. Congress this week extended the deadline for startups and small businesses to apply for emergency funding from the Paycheck Protection Program (PPP), just hours before the loan program was set to expire. Under the measure, the U.S. Small Business Administration can continue to approve and offer PPP loans until August 8th to startups and small businesses that have been financially harmed by the coronavirus pandemic.
In the Midwest, some local entrepreneurs—such as Nebraska’s Tom Chapman, the Founder and Managing Principal at Chapman & Company—are advocating for a fundamental shift in the way the U.S. approaches startup ecosystems. We recently spoke with Tom to learn more about his company’s work supporting the creation of high-growth startups, the unique needs and challenges for entrepreneurs in the Midwest, his latest startup venture, and how the Midwest’s unique startup system makes it well-suited to address the problems that have vexed more traditional U.S. tech hubs.
TLDR: Telegram paid $18.5 million and returned the proceeds of its coin offering back to investors as part of a settlement with the U.S. Securities and Exchange Commission. The agency sued the firm last year for raising $1.7 billion through an initial coin offering to fund the development of its blockchain project, known as the Telegram Open Network. The settlement comes as U.S. cryptocurrency firms continue to seek regulatory certainty for the industry, including clear guidelines for digital coin offerings.
The Big Story: Congress increases pressure on vital Internet law. Policymakers are ramping up attacks on Section 230 of the Communications Decency Act, the 1996 law that has allowed startups that host user content to thrive. While this law provides online companies of all sizes with the ability to moderate users’ content without being held liable for users’ speech, the latest round of attacks on Section 230 have been largely framed around Internet companies’ content moderation practices—a difficult, time consuming, and expensive task for any online platform.
From its conception in 1999, the Greater Nashville Technology Council has been focused on bolstering the region’s entrepreneurial community by advocating for and supporting tech startups across Middle Tennessee. The member-based organization works with a variety of local stakeholders—including tech professionals, policymakers, and other state-based entrepreneurial organizations—to promote local workforce development and tech education initiatives. We recently spoke with the Greater Nashville Technology Council’s President and CEO, Brain Moyer, to learn more about the organization’s work, the region’s startup ecosystem, and what policymakers can do to further support local entrepreneurs.
TLDR: Federal officials are sending conflicting messages about their continued participation in global talks about the creation of a framework for digital services taxes (DSTs). While many of these taxes are targeted at large Internet companies, there are concerns that the startup community will be harmed by the trickle-down effect of increased costs for services and products to offset the taxes.
The administration’s decision to halt the issuance of work visas—including those under the H-1B program—for highly-skilled foreign workers will needlessly harm the tech industry and U.S. startup ecosystem that rely upon talented employees to drive global innovation. Instead of helping startups and small businesses recover from the coronavirus pandemic’s economic downturn, this proclamation hampers the tech sector’s ability to respond to the ongoing outbreak by limiting the effectiveness and reach of its workforce.
Your privacy is important to us. To better protect your privacy we provide this notice explaining our online information practices and the choices you can make about the way your information is collected and used.
